Evolution of Labour Laws

Overview

British Colonial Period (1850-1947)

The British introduced labour laws primarily to serve their economic interests—ensuring a steady supply of cheap labour for industries and plantations. However, these early statutes laid the foundation for modern labour legislation.

Key Colonial Legislation:​

• Factories Act, 1881: First major labour legislation establishing 8-hour workday, child labour abolition, and restrictions on women working at night​

• Indian Factories Act, 1891: Enhanced worker protections with further reduced working hours​

• Workmen’s Compensation Act, 1923: Pioneering social security providing compensation for workplace accidents​

• Trade Unions Act, 1926: Legalized trade union formation and provided certain rights and protections​

• Trade Disputes Act, 1929: Addressed strike and lockout provisions​

• Payment of Wages Act, 1936: Ensured timely wage payment without unauthorized deductions​

• Industrial Employment (Standing Orders) Act, 1946: Mandated clear employment conditions​

• Industrial Disputes Act, 1947: Established comprehensive industrial dispute resolution mechanism with works committees, conciliation officers, and tribunals​

These colonial laws were piecemeal and reactive, aiming at preventing unrest rather than protecting workers genuinely. They were limited mainly to the organized factory sector and often rigidly enforced to maintain industrial peace.​

Post-Independence Period (1947-1990)

Protective Legislation Post-Independence:​

• Factories Act, 1948: Updated safety and health standards
• Minimum Wages Act, 1948: Established minimum wage framework for workers​
• Employees’ State Insurance Act, 1948: Provided comprehensive social security coverage​
• Employees’ Provident Fund Act, 1952: Mandatory retirement savings scheme​
• Maternity Benefit Act, 1961: Protected working women during pregnancy​
• Payment of Bonus Act, 1965: Ensured workers share in organizational profits​
• Contract Labour (Regulation and Abolition) Act, 1970: Addressed exploitation of contract workers​

First National Commission on Labour (1969)

Established in 1966 under Justice P.B. Gajendragadkar and submitted its report in August 1969. The Commission conducted comprehensive examination of labour problems in both organized and unorganized sectors, recommending works committees and improved industrial relations mechanisms.​

The post-independence framework created comprehensive worker protection but resulted in complexity and rigidity, particularly in hiring and firing practices, limiting flexibility for businesses while sometimes limiting worker coverage in informal sectors.​

Reform Era and Modern Labour Codes (1991-2025)

Economic Liberalization Context: Post-1991 economic liberalization required labour laws to adapt to rapidly changing employment patterns, growing informal sectors, and technological changes in workplaces.​

Second National Commission on Labour (2002): Established in 1999 under Ravindra Varma, the Commission submitted its report on June 29, 2002. It recommended recognition of trade unions, wage boards for wage determination, three-tier grievance redressal systems, and social security provisions for unorganized workers.​

Four Labour Codes Reform (2019-2020):​

The Government of India consolidated 29 fragmented central labour laws into 4 unified codes, implemented after notification on November 21, 2025:​

1. Code on Wages, 2019: Consolidates the Payment of Wages Act 1936, Payment of Bonus Act 1965, and Minimum Wages Act 1948. Central and state governments can set minimum wages, with floor wages determined by central government.​

2. Industrial Relations Code, 2020: Consolidates Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, and Industrial Disputes Act 1947. Includes trade union recognition at central and state levels (first time), re-skilling fund provisions, and modified industrial dispute procedures.​

3. Code on Occupational Safety, Health and Working Conditions, 2020: Consolidates 13 previous laws including Factories Act 1948, Mines Act 1952, Building and Other Construction Workers Act 1996, and Contract Labour Act 1970. Establishes comprehensive health, safety, and working condition standards.​

4. Social Security Code, 2020: Extends social security to all workers including informal sector, covering healthcare, disability, pensions, maternity and family benefits, and employment injury insurance.​

Impact of Four Labour Codes: Consolidated 29 laws into 4 codes, simplified compliance, extended protections to informal sector, established uniform standards while maintaining worker protection, and aligned India’s labour ecosystem with global standards.​

PART II: INTERNATIONAL LABOUR REFORMS AFTER INDUSTRIALIZATION

Early International Labour Movements (18th-19th Century)

• Berlin Conference (1890): Adopted resolutions for minimum labour standards
• International Association for Labour Legislation (IALL): Founded 1900 in Basel with permanent International Labour Office established May 1, 1901​

Post-World War I Reforms and ILO Establishment

Treaty of Versailles (1919): Founded on the conviction that “peace can be established only if based on social justice,” the treaty created the International Labour Organization with a tripartite structure—governments, employers, and workers represented equally—unique among international organizations.​

International Labour Organization (ILO) – 1919:​

• Established: June 28, 1919, by Treaty of Versailles

• First Conference: October 29, 1919, in Washington DC with 40 member states

• Initial Conventions: First International Labour Conference adopted major conventions on 8-hour workday, 48-hour workweek, foreign worker equality, and safe working conditions​

• 1919-1939: ILO adopted 67 conventions and 66 recommendations​

• 1946: After League of Nations dissolution, ILO became the first specialized agency of the United Nations​

• Current Membership: 187 countries​

The ILO’s tripartite structure differentiates it from other international organizations—employee and employer delegates have equal voting rights with government representatives.​

Post-WWII Development and Core Labour Standards

Eight Core ILO Conventions establishing fundamental rights at work:​

1. Forced Labour Convention (No. 29, 1930): Prohibition of forced or compulsory labour

2. Abolition of Forced Labour Convention (No. 105, 1957): Complete abolition

3. Equal Remuneration Convention (No. 100, 1951): Equal pay for equal work

4. Discrimination (Employment and Occupation) Convention (No. 111, 1958): Non-discrimination in employment

5. Minimum Age Convention (No. 138, 1973): Child labour prevention at 15 years

6. Worst Forms of Child Labour Convention (No. 182, 1999): Immediate prohibition of worst forms

7. Freedom of Association Convention (No. 87, 1948): Right to organize

8. Right to Collective Bargaining Convention (No. 98, 1949): Collective bargaining protection

Post-WWII Developments: The post-war decades created the European Social Model with enduring partnerships between democratic governments and workers, who were drafted into ascending middle classes. The ILO served as a seedbed of institutions helping industrial societies consolidate material gains and develop legal architecture for work governance.​

PART III: INTERNATIONAL ORGANIZATIONS GOVERNING LABOUR LAWS

Primary International Labour Organizations

International Labour Organization (ILO):​

• Type: Specialized UN agency

• Founding: 1919 as part of Treaty of Versailles

• Structure: Tripartite (governments, employers, workers)

• Members: 187 countries

• Headquarters: Geneva, Switzerland

• Role: Formulates and implements international labour standards, provides technical assistance, promotes decent work concept

International Confederation of Free Trade Unions (ICFTU): Post-WWII democratic, anti-communist trade union confederation coordinating free market-oriented unions.

World Federation of Trade Unions (WFTU): Founded September 1945, associated with communist and socialist movements, affiliated with unions in socialist-oriented nations.​

World Confederation of Labour (WCL): Founded 1920 as International Federation of Christian Trade Unions (IFCTU), rebranded as WCL in 1968, merged with ICFTU to form ITUC in 2006.​

International Trade Union Confederation (ITUC): Formed 2006 from merger of ICFTU and WCL, representing largest democratic global trade union confederation with 180+ affiliated organizations in 150+ countries.​

Supporting International Institutions

United Nations and Labour Standards: UN Charter contains labour rights provisions; UN Social and Economic Council oversees labour issues; UN Human Rights bodies monitor compliance.

World Trade Organization (WTO): Coordinates with ILO on labour standards in trade; debates linking trade with labour standards to prevent labour dumping.

Organisation for Economic Co-operation and Development (OECD): Develops labour policy guidance for primarily developed nations through non-binding but influential guidelines.

Regional Organizations: European Union enforces mandatory labour directives and social charter; African Union coordinates labour rights; ASEAN coordinates regional labour frameworks.

PART IV: INDIA’S NATIONAL LABOUR GOVERNANCE BODIES

Ministry of Labour and Employment (MOLE)

Establishment and Role:​

• One of India’s oldest and most important ministries

• Current Minister: Dr. Mansukh Mandaviya (as of June 2024)

• Headquarters: Shram Shakti Bhawan, Rafi Marg, New Delhi

• First Labour Minister: Jagjivan Ram (1947-1952)

Key Functions:​

• Labour policy and legislation formulation

• Safety, health, and worker welfare standards

• Social security implementation

• Industrial relations and dispute resolution management

• Workers’ education and labour statistics

• International labour cooperation and ILO implementation

Attached and Subordinate Organizations:​

• Directorate General of Employment

• Chief Labour Commissioner (Central)

• Directorate General Factory Advice Service and Labour Institute (DGFASLI)

• Labour Bureau

• Directorate General of Mines Safety (DGMS)

Autonomous Bodies:​

• Employees State Insurance Corporation (ESIC): Established 1948, provides social security and health insurance

• Employees Provident Fund Organisation (EPFO): Manages retirement savings and pension schemes

• V.V. Giri National Labour Institute (VVGNLI): Training and research organization

• Central Government Industrial Tribunals and Labour Courts

Chief Labour Commissioner (Central) – CIRM

Organization:​

• Established: April 1945

• Role: Apex organization for Central Government labour administration

• Responsibility: Maintaining harmonious industrial relations in central sphere

Functions:

• Prevention and settlement of industrial disputes

• Enforcement of labour laws

• Worker welfare promotion in central establishments

National Commissions on Labour

First National Commission on Labour:​

• Established: December 24, 1966

• Chairman: Justice P.B. Gajendragadkar

• Report: August 1969

• Scope: Comprehensive review of both organized and unorganized sector labour issues

Second National Commission on Labour:​

• Established: October 15, 1999

• Chairman: Ravindra Varma

• Report: June 29, 2002 (after four extensions)

• Key Recommendations: Trade union recognition, wage boards, three-tier grievance systems, digital identity for unorganized workers, social security and welfare measures

PART V: MAJOR INDIAN LABOUR ORGANIZATIONS

Detailed Organization Profiles

All India Trade Union Congress (AITUC):​

• Established: October 31, 1920, in Bombay

• First President: Lala Lajpat Rai

• Initial Members: 64 unions with 146,584 workers

• Significance: First national trade union organization in India, formed to send delegates to newly established International Labour Organization

• Current Status: Completed 100 years in October 2020; associated with Communist Party of India

Indian National Trade Union Congress (INTUC):​

• Established: May 3, 1947, Delhi

• Founder: Sardar Vallabhbhai Patel with blessings of Mahatma Gandhi

• Initial Members: 35 unions with 157,000 members (grew to 499 unions with 10,33,614 members within first year)

• Philosophy: Congress-aligned, moderate and democratic approach

• Current Status: Continues as major central trade union

Hind Mazdoor Sabha (HMS):​

• Established: December 29, 1948, in Howrah, West Bengal

• Founders: R.S. Ruikar (President), Ashok Mehta (General Secretary), T.S. Ramanujam, G.G. Mehta, Basawon Singh, and others

• Initial Members: 119 unions with 103,798 members

• Philosophy: Socialist orientation by independents and Forward Bloc followers

• Current Status: Active socialist-oriented central union

United Trade Union Congress (UTUC):​

• Established: May 1, 1949, in Calcutta (Kolkata)

• Founders: K.T. Shah (President), Mrinal Kanti Bose (General Secretary)

• Initial Members: 236 unions with 347,428 members

• Philosophy: Leftist, revolutionary socialist orientation

• International Affiliation: World Federation of Trade Unions

• Current Status: Continues as smaller central trade union

Bharatiya Mazdoor Sangh (BMS):​

• Established: July 23, 1955, in Bhopal

• Founder: Dattopant Thengadi (Param Shradheya Dattopanth Thengadiji)

• Philosophy: Integral Humanism and Bharatiya cultural values; opposition to both Capitalism and Marxism

• Formation Story: Started from zero with no initial membership, registered unions, or political backing

• Current Status: Largest central trade union with 6-10+ million members; Labour wing of RSS

• Notable: Not affiliated to any international labour confederation

Centre of Indian Trade Unions (CITU):​

• Established: May 30, 1970, in Kolkata

• Founders: B.T. Ranadive (President), P. Ramamurti (General Secretary), Kamal Sarkar (Treasurer)

• Formation Context: Created from AITUC convention in Goa (April 9-10, 1970)

• First Conference: Attended by 4,264 delegates from 1,759 unions representing 8,04,637 workers from 18 states

• Philosophy: Class struggle, socialism as transformation goal, opposition to exploitation

• International Affiliation: World Federation of Trade Unions

• Current Status: Active with 6.2 million members (2023); strong presence in Kerala, West Bengal, Tripura, Tamil Nadu

• Current Leadership: K. Hemalata (first woman president), Tapan Kumar Sen (General Secretary)

The evolution of labour laws in India represents a journey from colonial exploitation to comprehensive worker protection embedded in constitutional frameworks. The British era introduced foundational legislation serving primarily employer interests, while the post-independence period established protective frameworks reflecting social justice principles. The modern Four Labour Codes reform consolidates fragmented laws into simplified, comprehensive codes extending protection to previously excluded informal sector workers, aligning India’s labour legislation with global standards.​

International labour law evolution, beginning with nineteenth-century worker movements through ILO establishment in 1919, reflects global commitment to social justice as foundation for world peace. The ILO’s unique tripartite structure ensures worker voice remains central to global labour governance.​

India’s labour organizations, from the pioneering Bombay Mill Hands Association (1890) to contemporary movements, demonstrate persistent worker struggle for dignity and rights. These organizations, representing diverse ideological perspectives, collectively shaped India’s labour movement and continue influencing contemporary labour relations.​

General Studies II

Commissions of Labour (1929-2002)